Target profits continue to slide as discretionary purchases slow

Retail Dive

Target achieved comparable sales growth in Q4 despite a challenging economic environment. CEO Brian Cornell said strength in food and beverage, beauty and household essentials offset softness in discretionary purchases.

Target’s Q1 and 2023 guidance is below expectations, Telsey Advisory Group analysts led by Joseph Feldman said in a note. “In 2023 and beyond, Target should benefit from a gross margin recovery, assuming better inventory control, fewer markdowns, and supply chain tailwinds,” Feldman said.

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